Merchant Companies and Non Merchant Companies
A merchant (ecommerce) company is a company that owns the items that they sell before they resell them. Some examples are Business-to-consumer transactions, Business-to-business transactions and Business-to-government transactions.
Merchant companies use these business models along the supply chain. They can use the B2B model to from Supplier to Manufacturer, from Manufacturer to Distributor and from Distributor to the Retailer. When the Retailer sells to the Consumer then they would be using the B2C model. Business along the supply chain that do business with the Government would be using a B2G system.
Examples of common nonmerchant ecommerce companies:
Auctions: Ebay.com is a popular example of an ecommerce auction. Auctions play the role of matching a buyer and seller while they receive a commision from the price of the goods that they sell. The ecommerce application of auctions online enable the company to support and sustain a competitive-bidding process.
*Check out this you tube video about a government auction site, govsales.gov. This site allows you to see the assests that the government is selling. This would be a form of an auction.
Check out this Youtubevideo. It talks about how to sell your first time on Ebay! Familiarilize yourself with an example of a nonmerchant company...
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